India-New Zealand trade deal comes into force today: What changes for exporters, wine lovers and job seekers
The India-New Zealand FTA is in force. Indian goods enter duty-free, NZ wine, apples and honey get new tariffs and 5,000 work visas open for Indians
PTC Web Desk:Â Â The free trade agreement (FTA) between India and New Zealand takes effect on Tuesday, October 20. Indian goods can now enter New Zealand without paying customs duty while India is cutting tariffs on some New Zealand products. The deal also opens new temporary work visa routes for skilled Indians.
Duty-free access for Indian goods
Every Indian product line will get duty-free entry into the New Zealand market. For exporters, that is the biggest benefit of the deal.
India’s side is more mixed. Some cuts apply from day one and others will phase in over time. Sheep meat, wool and wooden goods from New Zealand get duty-free entry now and more products will follow on a set schedule.
Also Read |Â 'Dream come true': IAF chief AP Singh flies his final sortie in uniform with first instructor
Wine, kiwifruit, apples and honey
Wine duty will depend on the price of a 750 ml bottle, calculated on its CIF value. In the first year, the rate is 150 per cent for bottles under USD 5, 95 per cent for bottles between USD 5 and USD 15 and 70 per cent for bottles priced at USD 15 or more.
Some farm products come in through quotas:
Kiwifruit: A zero-duty quota of 6,250 tonne in year one, for fruit priced at USD 1.80 per kg or more.
Apples: A quota of 35,000 tonnes starting in year two, at 25 per cent duty instead of the current 50 per cent.
Manuka honey: Certified honey gets a reduced rate under a quota. For the rest of 2026, the quota is 40 tonne, covering eligible imports priced between USD 20 and just under USD 30 per kg.
Dairy stays protected
India has kept its sensitive sectors out of the deal. Dairy, sugar, edible oils and certain farm products get no tariff concessions. Animal meat is also excluded, apart from the sheep meat covered under the agreement.
New work visas for Indians
From October 20, two Temporary Employment Entry visa routes open for qualified Indians. Up to 5,000 people can hold these visas at any one time. They are valid for three years and do not lead directly to residency.
Applicants must still meet New Zealand’s usual rules, including a valid job offer from a recognised employer, along with qualification, English language, health and character requirements.
What comes next
From November 16, Indian graduates with a PhD from a New Zealand institution can apply for a post-study work visa of up to four years.
A working-holiday scheme for Indians aged 18 to 30 is also planned within two years. It will offer up to 1,000 places a year, with stays of up to 12 months.
On the investment side, New Zealand has promised to facilitate USD 20 billion of investment in India over 15 years. Both countries aim to lift two-way trade in goods and services to NZ$7 billion by 2030.